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7 Cards in this Set
- Front
- Back
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What does the physical inventory count do? |
it verifies the balance on the books |
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How would you do a journal entry for a $600 inventory shrinkage? |
COGS 600 Inventory 600 |
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What is the FIFO method used for? |
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What is the LIFO method used for? |
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When is the weighted average cost method used? |
generally used in warehouses for a bunch of undifferentiated goods. COGS is neither high nor low |
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Lower of Cost or market: |
inventory is usually valued at it's acquisition cost |
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How would you calculate for the weighted average cost method? |
Cost of Goods Available for Sale = Avg. Unit cost Total Units Available for Sale
(Avg. unit cost)(units left over)= Ending inventory |
